Motor Accident Compensation | Taking Engineering Student's Notional Income At ₹6,000 Is 'Unrealistic': P&H High Court Enhances Compensation

The Punjab & Haryana High Court enhanced compensation from ₹5.76 lakh to ₹46.46 lakh in a motor accident death case involving a young engineering student, emphasizing that assessing the monthly income of a young engineering student at ₹6,000 is “unrealistic”.Justice Sudeepti Sharma said, "The deceased was pursuing his studies in one of the premier engineering institutions of the country and possessed an impeccable academic record, as is evident from the Marks Cards... Notwithstanding these cogent indicators of his future earning potential, the learned Tribunal, by resorting to conjecture, assessed his notional monthly income at ₹6,000, which, in the considered view of this Court, is manifestly inadequate and wholly unrealistic..."The appeal was filed by the legal representatives of deceased Rajan Kumar Sharma, challenging the award dated 15 September 2009 passed by the Motor Accident Claims Tribunal, Chandigarh. The Tribunal had granted ₹5,76,000 with 6% interest for the death caused in a road accident in November 2006.The primary issue before the High Court was limited to quantum of compensation.Counsel for the appellants argued that the Tribunal grossly undervalued the deceased's income at ₹6,000 per month.The deceased was a third-year Mechanical Engineering student at Punjab Engineering College, with strong academic credentials and bright career prospects. No amounts were awarded towards future prospects, consortium, or conventional heads, he added.The Court relied on established Supreme Court cases governing compensation, including Sarla Verma v. DTC (multiplier and deductions), National Insurance Co. v. Pranay Sethi (future prospects and conventional heads).The Court recalculated compensation and opined that and "having regard to the academic standing and career trajectory of the deceased, this Court is of the considered opinion that even a conservative estimation of his notional income ought to be fixed at ₹30,000 per month. Such determination would better subserve the object of awarding “just compensation” as contemplated under the Motor Vehicles Act and rectify the patent inadequacy in the assessment made by the Tribunal."The Court enhanced compensation to carry 9% interest per annum from the date of filing of the claim petition and respondents directed to deposit the amount within two months.The Tribunal directed to disburse the amount to claimants as per the original award structure.Mr. Vipul Sharma, Advocate for Mr. Ashwani Arora, Advocate for the appellants.Ms. Madhu Dayal, Advocate and Ms.Chetna Thakur, Advocate for the respondents.Title: Smt. Kamlesh Kumari (deceased) through LR and anr. v. Union of India and ors.Click here to read order

Motor Accident Compensation | Taking Engineering Student's Notional Income At ₹6,000 Is 'Unrealistic': P&H High Court Enhances Compensation

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